followers view all
following view all
|· Free Traffic
· Traffic Exchange Fans!
|James is the owner of James Okhueleigbe's Blog. Are you interested in affiliate marketing? Or are you serious about making money on the internet? If so visit this site to discover the tips and secrets for you to success online.
Federal Earned Income Tax Credit
Federal earned income tax credit is claimed by tax payers who meet the minimum amount filed in their tax return. The EIC helps to lower the amount of taxes you own to the IRS and increases your refund. There are strict rules to be followed for income included in your tax return before you can claim the EIC and failure to follow the rules can get you in trouble with the IRS. The EIC is an income tax credit for low income tax payers. The amount is determined by how much money was earned during the tax year.
The earned income tax credit is available to tax payers who have earned income. It is only the income the IRS determines as earned income that is included for the EIC purposes. Earned income includes wages, salaries and tips, net earnings from self-employment, gross income received as a statutory employee. Also, strike benefits you received from your union and long term disability money you received before you reached the retirement age is also defined as earned income. To determine the minimum retirement age according to the IRS, you have to be able to know the age you were first eligible for pension or other retirement benefits from your employer.
There are limits on your income when claiming the Federal earned income tax credit. The IRS sets the minimum and maximum income levels for the EIC purposes. In 2010 tax year, the amount earned must be less than $43,352 for tax payers who have three or more qualifying children, and $48,362 for those tax payers who are married and filed jointly, $40,363 for tax payers with two qualifying children, and $45,373 if you are married and filed jointly, $35,535 if you are a tax payer with one qualifying child and $40,545 if you are married and filed jointly, $13,460 if you are a tax payer with no qualifying child and is at least 25 years old and less than 65 years, and $18,470 if you are married and filed jointly. The tax payer’s child must earn less than the personal exemption of $3,650, unless the child is a full time student under the age of 24 or under the age of nineteen. Alternatively, the tax payer‘s child must be permanently and totally disabled at any time of the year regardless of the age. Their qualifying child does not necessarily have to be their dependent unless the child is married. Other requirements include a valid social security number, must be a U.S citizen or resident for the whole year, investment income cannot be more than $3,100, unless filing form 4797. Investment income is taxable, interest and dividend, tax exempt interest, and capital gain net income. The tax payer must not file form 2555 or form 2555 EZ, and filing status is married filing jointly, qualifying widow or widower with dependent child, head of household or single.
The IRS can deny or lower your EIC if you do not follow the rules and you cannot claim the EIC for two years. If you intentionally ignored the EIC rules and the disallowance involved fraud, you cannot claim the EIC for ten years. If your EIC was denied or lowered by the IRS you may be able to receive the EIC by filing form 8862, information to claim earned income credit after disallowance. This form can be submitted by any tax payer who had the EIC disallowed or lowered for any tax year after 1996, and the problem with the EIC was not a math or clerical mistake.
Taxes have different topics and a lot of financial benefits when you get involved. I have a very unique product for you that will make you know more about your taxes. Go now and click on Internet Marketing Tax Guide and discover many things you never knew existed. What do you thick about this publication? Leave your comments and i will be happy to answer all your questions.
|share||like 19||report||195 views|